[Ghaati]

Around here it doesn't seem to make too much of a difference. Most folks in the Villages don't take out mortgages for their homes, they pay cash.

[logybogy]

True, but the plan is usually they first need to sell their home up north to buy their retirement home "in cash" along with money left over to pad their retirement account and lifestyle. If the market slows down up north, that leads to a slow down down south especially with the stock market down. People generally don't like selling at lows or buying at highs for that matter....

Originally Posted by Ghaati

Around here it doesn't seem to make too much of a difference. Most folks in the Villages don't take out mortgages for their homes, they pay cash.

[Kid Ashbury]

Originally Posted by Ghaati

Around here it doesn't seem to make too much of a difference. Most folks in the Villages don't take out mortgages for their homes, they pay cash.

Most cash buyers do some type of cash-out refinance after buying, effectively getting a mortgage on the home post-purchase. This is often referred to as delayed financing.

Interest rates rising absolutely affect cash buyers and their real estate purchase behaviors because most don't just intend to say goodbye to that cash to own their home outright for the long haul.

[Racer46]

Originally Posted by beach43ofus

That family member wasn't alone...millions do it, and bring great wealth down here to FLA. A lot of gets spent here in their golden years.

Yes that is true. In a way it is like CA. High paying Jobs or having earned enough money to live there. If not, hard to do and that is similar to what is happening in some parts of FL as well.

Though many places in FL are looking for workers and unless they pay more no one will work for them.

[FLCrescentBeach]

Well, it's not hard to understand that prices raced up too fast in the first place. We wouldn't touch this market, but I've never seen/read so many people claiming this run up is not going to end badly. What are these posters smoking? The time to sell out was late last year! it's certainly not the time to buy given the economy, we would never sink cash in a house either!

[Mathguy]

Originally Posted by logybogy

Not everyone is able to buy $500k homes in cash so demand has to get pushed downward, right? Also, stock market is down big, crypto has collapsed, inflation is out of control, homeowner's insurance market is a mess, and recession forecasts are now the base case for most banks for the next 12 months with layoffs already starting in tech and real estate.

Interestingly enough, while the real estate new home construction and resale markets may stall out, people got to live somewhere. I don't see much relief in rents. People with those sub 3% mortgages may never see those again in their lifetime and stay in their homes rather than move up or out and the supply will remain very low which should stabilize pricing. I don't see as much a real estate collapse as a stagnation and lack of inventory going forward both new construction and resale.

Just wait a year or more. Interest rates will continue to increase and the recession will start to force people out of properties along with mortalities and family sales.

There is a natural cycle to these things and another dip is coming in the next few years.

[1insider]

It's a rare cash buyer who keeps the money for a Florida property purchase sitting in cash in their bank account. Of the scores of cash transactions that I've been involved in, most of the time the buyers pulled the money out of a brokerage account after selling some investments. People are understandably reluctant to sell when indexes are down so much, over 20% this year alone. The frantic, pay-whatever mania has evaporated very quickly in my central east coast market.

[GrouperK]

Every house in our neighborhood for under 400k was selling in a day or two. Now it’s about a week or two. I haven’t seen any price cuts though.

[MOforthewin]

Originally Posted by GrouperK

Every house in our neighborhood for under 400k was selling in a day or two. Now it’s about a week or two. I haven’t seen any price cuts though.

Had a home listed just 2 weeks ago have a 15k price cut yesterday when I looked it up. It was overpriced at 475k though. It's like people put their houses for sale at a large price then a couple weeks later start slashing. Hoping someone bites when they first list it.

[GrouperK]

Originally Posted by MOforthewin

Had a home listed just 2 weeks ago have a 15k price cut yesterday when I looked it up. It was overpriced at 475k though. It's like people put their houses for sale at a large price then a couple weeks later start slashing. Hoping someone bites when they first list it.

Not to specify the builder, but our house(230k 6 years ago) is a pretty common floor plan in Cape Coral; they’re still building them for no less than 405k. I’ve been following all of them for sale on Zillow just to see what crazy numbers they go for out of curiosity. Most sold for around 450k the past year. Most were still left with zero upgrades, some had fences or upgraded appliances. One seller listed theirs in a less desirable part for 550k, it’s still for sale (249 days). I can’t blame them for trying to get a bite. If someone offered me 500k for our house, I’d take it.

There have been a few 1200sqft homes being listed in my area for 400k and get cut down by 10k or so a day until it get snagged.